Ofgem has approved the Market-wide Half Hourly Settlement (MHHS) Programme Change Request CR055, introducing a 6.5-month delay to key milestones. This change aims to ensure thorough system integration testing, which is essential for the smooth operation of this transformative initiative.
The delay is expected to mitigate risks associated with insufficient testing and ensure robust implementation. To further expedite the programme and avoid additional delays, Ofgem plans to implement regulatory measures in early 2025, including licence modifications and changes to governance frameworks.
Now, the MHHS migration start date has been moved from early April 2025 to late October 2025. The migration end date has been moved from October 2026 to May 2027. The date for cutting over to the shortened settlement timeframe has moved from December 2026 to early July 2027.
Understanding MHHS and its impact
MHHS is a significant reform in the UK energy market designed to record electricity usage in half-hour intervals using smart meters. This granular data enables more accurate billing, better demand forecasting, and the development of innovative products like time-of-use tariffs. These tariffs incentivise consumers to shift electricity use away from peak times, contributing to a more efficient and sustainable energy system.
The initiative is a cornerstone for achieving the UK’s Net Zero targets, providing both environmental benefits and cost-saving opportunities for consumers and businesses. It is expected to reduce settlement times from 14 months to just four, improving efficiency across the energy market.
This adjustment in the MHHS timeline reflects a balanced approach to ensuring a successful rollout while safeguarding the programme’s objectives.
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